Innovations by a Small Factoryin Kawasaki
towards a Decarbonized Society
Creating a new era of manufacturing companies
with a goal of achieving carbon neutral by 2030

The 16th Kawasaki
International Eco-Tech Fair
November 15, 2023

HIZAKI Kougyo Co., Ltd.
CEO Osamu SAMPEICompany Profile◦ Name: HIZAKI Kougyo Co., Ltd.
◦ President: Osamu SAMPEI◦ Address: 7-2 Okawa-cho, Kawasaki-ku,
Kawasaki City, Kanagawa◦ Establishment: July, 1958
(celebrating 65 years in business)◦ Business outline: Design, production &installation of various signs for facilitiesand airports, fixtures for events andvarious equipment◦ Number of employees: 27

Our Works

What inspired us to reduce
CO2 emissions?
March 11, 2011
Impact of the Great East Japan
Earthquake- Doubts about electric power source…
Electricity outlets are a necessity in our affluent
lifestyles, but what lies beyond that is an impact ofCO2 and radioactive waste…

Impact on the Hometown
Nuclear power plant accident
caused by the Great East Japan
Earthquake on March 11, 2011
Hydrogen explosion at Fukushima
Daiichi Nuclear Power Plant
Futaba-machi, Okuma-machi, and thebirthplace of my parents,“Tomioka-machi and Namie-machi”
were also affected

Results of Aircraft Monitoring by MEXT and US DOE

Efforts for
Decarbonization
Energy Conservation(Reduction)

Utilization of Renewable
Energy (Creation, Storage)

Consider the benefits of investment

Minimize the amount of energy

in equipment upgrades,

used through energy conservation,

manufacturing methods, work

create our own energy whenevermethods, and usage so as topossible, and make effective use

minimize the company's energyof the electricity produced

consumption to the greatest extentpossible.

Energy Conservation / Introduction ofEquipment (Reduction)◦ Replaced all of 54 mercury lamps in thefactory with LED lightings (2014)◦ Applied thermal barrier paints for roof (2018)◦ Replaced all internal lightings with LEDlightings (2019)◦ Upgraded to energy-efficient laser
processing machinery (2019, 2020)◦ Shared internal information of demandvalues and CO2 emissions (2019, 2021)

Utilization of Renewable Energy / Examples ofIntroduction (Creation, Storage)◦ Installed solar panels for private consumption
on the roof of the company building (2020)◦ Introduced one each of PHEV and EV forklifts(2023)◦ Connected a 13.5kwh storage battery (2021)

Changes in Annual Electricity Purchases(kwh)

278,000 kwh at the peak (2013)
280,000(Purchase price: 6.8 million yen)
210,000

166,000 kwh at present (2022)(Purchase price: 2.1 million yen in 2020
 5.4 million in FY2022)

140,000*Amounts are increasing due to surging fuelprices!
70,000Purchase amount isreduced by 49%!

0FY2012FY2015FY2018FY2021

Changes in Annual CO2 Emissions(Electricity + Fossil Fuels + Gas)
180,000(ton)

Replaced mercury
lamps in the factory

At the peak (2014)

Applied thermal barrier
paints for roof
PPS
Visualization ofdemand135,000

Introduced EV, solar
power generation, andlaser beam machines

172 tonReplaced (2)Present (FY 2022)
Introduced
storage batteries
Laser beam machines
Replaced (1)Adopted LED lightings
across the company

90,000

Reducedby 52%!

45,0000
FY 2012FY 2014

FY 2016

FY 2018

82 tonFY 2020

FY 2022

Summary of Cost Benefit over 10-Year Investment
Capital expenditures◦ Mercury lightings in factory

5 mil. yen◦ Thermal insulation paintings

2.57 mil. yen◦ Fluorescent lamps,incandescent bulbs

0.5 mil. yen◦ Laser beam machines x 2

180 mil. yen◦ Company car x 1

5 mil. yen◦ Solar power equipment

10 mil. yen
Total 203.07 mil. yen

Reductions during
the period◦ Factory’s mercury lightings

12 mil. yen◦ Thermal insulation paintings 2.8 mil. yen◦ Fluorescent lamps andincandescent bulbs

1.1 mil. yen◦ Laser beam machines x 2

17 mil. yen◦ Company vehicle

3.5 mil. yen◦ Solar power equipment

6.3 mil. yen

Total 42.7 mil. yen

Utilization of subsidies◦ EV company car

Annual energy expense wasreduced by0.55 mil. yen◦ Laser beam machines

50 mil. yen◦ Solar power equipment

3.3 mil. yen

Total 53.85 mil. yen

203.07 - 53.85 (mil. yen) =Approx. 5.2 mil. yen

Out-of-pocket expenses
151.22 million yen(for 2023 market conversion)

Breakdown of 81 tons ofAnnual CO2 Emissions in FY2022
Other gases andkerosene

Fossil fuel from
6 company cars
7,000 L

Approx. 3 tons

166,000 kWh

Intensity 2.32 t/co2

Intensity 0.000377 t/co2

16.2 tons

62.6 tons

17%
15%
Electric power generator
for private consumption
36,000 kWh
Intensity 0.000377 t/co2

13.6 tons → 0 ton

Externally procured
power

68%

Roadmap to the “hizaki Carbon Neutral”
As a result of our decarbonization efforts over the past few years, we halved the annual CO2 emissions from 140
tons to 70 tons. We will build our CN factory in Chiba this year, and continue to push forward as a top runner indecarbonization management in the SME manufacturing industry.
Opens the 2nd factory
Opens the power plant 2

CO2 (tons)
80

Replacingcommercial
vehicles with EVs

Replacingcommercialvehicles with EVs

Opens the power
plants 3 & 4
Replacingcommercialvehicles with EVs
Opens the power
plants 5 & 660

40

Replacingcommercial
vehicles with EVs

Lastyear

Replacingtransport vehicles
with EVs

Thisyear

Replacingtransport vehicles
with EVs
Replacingtransport vehicles
with EVs

20

Replacingtransport vehicles
with EVs
Zero carbon

0

2022

2023

2024

2025

2026

2027

2028

2029

2030

Annual energy consumption and CO2 emissions atDistance-based CO2 Emissions from the Company Vehicles

present ＆ Reduction by solar power generation for
private consumption
Present amount of electricity purchased= 166,000 kwh x Basic unit 0.377 = 62.6 tons (CO2)Fuel consumption (such as gasoline)= 7,000 L x Basic unit 2.322 = 16.2 tons (CO2)Reduction by solar power generation= 36,000kwh x Basic unit 0.377 = 16.6 tons (CO2)Reference (reduction of expenses by power generation: 1kwh
= 40 yen x 36,000 = 1,440,000 yen)

FuelUsage
efficiency per 1 km

Coefficient

CO2 emissions
AnnualAnnual mileageper 1 kmemissions kg

Model

Fuel

Atlas AGasoline

50.200

2.322

0.464

7,0003,251

Atlas M

Gasoline

60.167

2.322

0.387

5,500

2,129

N vanGasoline

100.100

2.322

0.232

12,500

2,903

HIJET

Gasoline

160.063

2.322

0.145

5,000

726

HILUX

Light oil

120.083

2.585

0.215

10,000

2,154

HIACE

Light oil

12.5

0.080

2.585

0.207

12,0002,482

MITSUBISHI PHEV Gasoline

140.071

2.322

0.166

5,000829

MITSUBISHI PHEV EV (kwh)

50.200

0.377

0.075

15,0001,131

Organizations that CN participates in &Certificates and Awards that CN has received
Organizations- RE Action
RE100 is the global corporate renewableenergy initiative bringing together hundreds of large andambitious businesses committed to 100% renewable electricity.
We are the first company in Kawasaki City participating in theorganization of the small to medium enterprises version
initiative.

- GX League
We are one of the 440 companies participating in the league todiscuss which is a partnership of industry, government,
academia, and financial institutes to achieve both industrial
structural reform and economic growth by using as little fossil
fuels as possible, which are a source of greenhouse gases,
and instead, renewable energy sources such as solar and wind
power, and implement voluntary emissions trading.

- Decarbonization Action Mizonokuchi
In February 2020, Kawasaki City announced its goal ofvirtually zero CO2 emissions by 2050, and in Novemberof the same year, it formulated the Kawasaki Carbon
Zero Challenge 2050, a decarbonization strategy, andestablished “Decarbonization Action Mizonokuchi” as
one of its initiatives toward 2030.

Certificates & Awards- Kanagawa’s businesses promoting local energy
production and consumption
Certified on March 4, 2020
- Kanagawa Global Environment Awards
Awarded on March 9, 2021
- Kawasaki Smart Lifestyle Gran Prix
Encouragement Award
Encouragement Award in November 12, 2021
- Kawasaki SDGs Gold Partner
Certified on November 15, 2021
- The 129th Kawasaki Entrepreneurs Audition
Received the most 6 awards in January 4, 2022
- Low CO2 Kawasaki Brands ’22
Certified as the outdoor brand, November 1, 2022
- Decarbonization Challenge Cup
The Minister of the Environment award, the Goldprize in the Company/ Local Government sectionin March 7, 2023

Participation in “Renewable Energy 100
Declaration RE Action”“HIZAKI Kougyo” and “Kawasaki Shinkin Bank” are the firstcompanies that has participated in the initiative in Kawasaki
City.
Our efforts have attracted attention from various
media outlets, leading to lectures, magazine andnewspaper coverages etc…
Decarbonization × Small Factory = HIZAKI Kougyo

New Business Projects
Businesses
associated withFood Trucks

Existing
Businesses
SDGs-Tech

OutdoorTech-OD

Off-the-Grid
Mobility Spaces(Mobile Houses)

GibierTrucks
CN-SDGs

Renewable
EnergyProjects

OD-CNNew Sites:
Sagami CN Lab
CN Factory Kimitsu

VehiclesOutline of New Businesses
For Decarbonized Society: Part 1

Products for ‘to C’

Production related torenewable energy

Outdoor Items(EC business)

We are able to achieve this level of carbon
neutrality even though we are a small factory.
Recently, we have begun to receive anincreasing number of consultations onrenewable energy-related development
projects. There is a demand for new
manufacturing for the decarbonized society of
the future. We are now in a position to meetsuch needs.

This is a new, BtoC outdoor goods business that
our company, which had been mainly a BtoB
business, has started.
Last year, we were certified as a CN brand byKawasaki City.
We will grow this business into one of ourmainstay businesses with the brand power of ourrenewable energy promotion and our longtime
processing know-how and technical capabilities.

For Decarbonized Society: Part 2

Customized Vehicles for
SDGs Society
Production and Sales of Food

Off-Grid Mobility Space(Mobility Vehicles)
An environmentally friendly trailer that
operates on an independent power source.
It combines three features: a strong structure,a highly flexible design, and a unique EMS(Energy Management System).
It won 6 awards, the most in the audition, at
the 129th Kawasaki Entrepreneur Audition!

Trucks & Gibier Trucks
We started this business thinking that we could
support restaurants that have suffered a lot ofdamage from the Covid-19 pandemic and been
making various efforts to survive and maintain theirbusinesses.
We manufacture and sell one-of-a-kind food trucks
tailored to our customers' needs.
We also develop a vehicle for a mobile butcheryfacility for the purpose of getting rid of nuisancewildlife and processing them for consumption aspart of a consortium project by the Ministry ofAgriculture, Forestry and Fisheries.

Plans for New Factory
A carbon-neutral factory with independent power is under construction for the SDGsrelated business and assembly of customized vehicles and large products

Our second factory, “hizakiCN Factory Kimitsu”
Scheduled completion: End of January, 2024, operation to be started in March
Location: 130-1 Tenjinsita, Nishiawagura, Kimitsu City, Chiba
Site area: 330 tsubo (factory’s floor area 405m2, office 48m2) with solar power panels on theroof for private consumption

Business description- Assembly work of customized vehicles,
including food trucks and mobiles homes- Welding, assembly and painting of large
can products- Development and mass-production ofrenewable energy related products- Sales, display and maintenance ofcomplete vehicles- Assembly of EV-converted vehicles
In addition, “CAD center” inIshigakijima and “CN Town” in
Iwatemachi are in progress

HQ

Construction siteCN Visiting Lectures and Workshops
Providing lectures to visualize renewable energy power using mobilehouses with independent power source and manufacturing experience
workshops in Kawasaki and Yokohama
Kawasaki Frontale
Monodukuri Fair 2022 Workshop(Renewable energy x plastic recycling)

Kansei Junior High School
Visiting Lecture for the 3rd gradestudents on decarbonization
December, 2022

Kansei Junior High School
Visiting lecture for the 2nd & 3rdgrade students on decarbonization
April, 2022

Kawasaki Brave Thunders
SDGs Workshop Event 2023
Renewable energy machine operation,
manufacturing experienceStriving to Achieve Two Goals(1) Achieving 100% carbon neutral by 2030
(Scopes 1 & 2)
(2) Shifting to new “solving social issues”
businesses